Fuel prices to drop by 2.5% in February – IES

The Institute for Energy Security (IES) has predicted that prices of petroleum products are likely to fall by 2.5 percent at various pumps in the first pricing window of February 2020.

The decrease, yet to take effect, is as a result of the fall in prices of Brent crude, gasoil and gasoline prices on the world market, the energy think thank indicated.

In a statement issued by the IES, it stated that “from the 4.66 the decline in prices of Brent crude, coupled with the 8.00 percent and 5.69 percent considerable reduction in the prices of Gasoil and Gasoline respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market dropping by roughly 2.5.”

It further said, “the expected fall of fuel prices for consumers is a reflection of market fundamentals as accepted in a deregulated market structure.”

In the second window of January this year, fuel prices went up marginally by 9 pesewas where petrol was selling at GH¢5.50 per litre at various pumps from its previous price of GH¢5.41.

The marginal increase was attributed to the upsurge in the price of the product on the international market.

The Executive Secretary of Chamber of Petroleum Consumers (COPEC), Duncan Amoah, in a phone interview with GhanaWeb on January 14, 2020, predicted that “fuel prices may have to go up again because as we speak, oil companies have already taken the shield of some 6, 7 pesewas every litre they are selling. They are making loses to that amount and then the international market prices are also pushing upwards.”